Free State Opens MSME Funding Applications to Boost Township Economy

In a bold move to stimulate local enterprise growth and accelerate township economic revitalization, the Free State Department of Economic, Small Business Development, Tourism and Environmental Affairs (DESTEA) has officially opened the 2025 funding application window for Micro, Small, and Medium Enterprises (MSMEs), informal businesses, cooperatives, and spaza shop owners.

This follows swiftly after the department’s 2025/26 Budget Vote speech, reflecting a clear commitment to rapid implementation and community-level impact.

“In less than a month since we tabled our budget, we are already delivering on our promise to the Free State business community,” the department said in its official statement.

Empowering Grassroots Entrepreneurs

The funding scheme is not only about capital injection but also aims to provide comprehensive support — financial and non-financial — including skills development, business training, equipment acquisition, and market access. The programme is positioned as a strategic intervention to nurture innovation, improve livelihoods, and strengthen the province’s economic fabric, particularly in townships and rural areas.

The funding application portal is now live and will remain open from 11 July to 21 July 2025. Applications can be submitted online via: https://client.fsdestea.kwantu.me

Three Incentive Streams Tailored to Business Size

DESTEA has designed three separate incentive categories, each aimed at addressing specific challenges faced by businesses of varying sizes.

1. Spaza Shop Support Incentive

Targeted at informal traders and spaza shop owners with an annual turnover below R1 million, this category aims to:

• Upgrade business premises

• Provide refrigeration and display equipment

• Supply initial stock

• Deliver business training and mentorship

Funding Cap: Up to R100,000

Application Requirements:

• South African ID

• Proof of residence in Free State

• Municipal business permit

• Black ownership of at least 51%

• Business must be operated by a South African citizen residing in the province

Contact: Ms Moipone Mohono – 082 559 7944

2. Small Enterprise Support

This stream is intended for small enterprises with an annual turnover under R10 million. Funding up to R250,000 will be allocated based on the enterprise’s specific needs.

Target Sectors:

• Retail

• Manufacturing

• Agro-processing and aquaculture

• Automotive repairs

• Digital technologies

• Waste economy

• Health and beauty

• Hospitality and accommodation

Contact: Ms Tshidi Maleka – 066 051 1279

3. Medium Enterprise Support

For more established businesses aiming for expansion, this incentive provides up to R1 million in co-funding. The funds are designed to complement applications to Development Finance Institutions (DFIs) or commercial banks.

Eligible Sectors:

• Chemicals and pharmaceuticals

• Automotive

• Green energy

• Agro-processing

• Clothing, textiles, footwear and leather (CTFL)

• Digital technologies

• Manufacturing

• Hospitality

Contact: Ms Nnana Matlepe – 082 443 5513

Inclusivity and Transformation at the Core

DESTEA’s approach emphasizes inclusive economic development, with a focus on women, youth, people with disabilities, and entrepreneurs from township and rural areas.

According to DESTEA spokesperson Makume, this funding initiative seeks to fill a long-standing gap in the provincial economic support ecosystem:

“Our MSMEs incentive is a unique fund created to address gaps in business financing, especially for expansion-stage enterprises. We want to bridge the divide and ensure every entrepreneur has a chance to succeed.”

Funding Agreement and Accountability

Successful applicants will be required to sign a formal funding agreement with the department. It’s important to note that previous beneficiaries who have outstanding invoices or who have received letters of demand from the department will not be considered for the current funding cycle.

Failure to comply with application criteria or submit the required documentation will result in automatic disqualification.

In addition to the three main funding streams, queries about industrialisation support can be directed to: Ms Portia Nyokong – 082 828 0259

Building a Resilient, Entrepreneurial Free State

Through this funding programme, DESTEA aims to not only bolster individual businesses but to create a provincial culture of entrepreneurship, job creation, and resilience. By supporting a wide spectrum of businesses — from local spaza shops to medium-sized manufacturing firms — the department is positioning itself as a catalyst for inclusive economic growth.

With a rapidly closing application window, interested parties are urged to apply promptly, ensure complete documentation, and contact the relevant officials for assistance where needed.